Use the formula for compound interest to find A

Question

A= P(1+r^n)

P=$30,000,r=0.14, and n= 3years

At the end of 3 years A is how much in dollars ?

(round to the nearest cent) 

Answer 1

the underlying compound interest formula that you want to use to solve here is

A = P(1 + r)^n

for this scenario that means taking

A = 30000(1 + 0.14)^3

A = 30000(1.14)^3

A = 44,446.32

meaning that the final amount in this scenario is $44,446.32

Answer 2

A = P(1 + rⁿ)                         Given

A = 30,000(1 + .14³)              Substitution

A = 30,000(1 + .002744)        Find the cube of .14

A = 30,000(1.002744)            Add 1 to .002744

A = 30,082.32                       Multiply 30,000 times 1.002744